NESG Advocates for Private Sector-Led Reforms to Address Human Capital Gaps
The Nigerian Economic Summit Group (NESG) has issued a strong call for enhanced private sector engagement and coordinated reforms to tackle persistent deficiencies in Nigeria's human capital development. This appeal was made during the Human Capital Development (HCD) Policy Forum held in Lagos, which brought together stakeholders from government, development agencies, and the private sector to assess progress and define priorities under the national HCD program.
Forum Focus on Aligning Investments
Convened by NESG as the secretariat of the Private Sector Partnership Group (PSPG), the forum centered on synchronizing investments in health, education, and skills with long-term economic growth objectives. Despite existing frameworks, Nigeria continues to grapple with funding limitations, institutional weaknesses, and poor coordination in implementing human capital policies.
The HCD program, initiated by the National Economic Council, aims to boost productivity through improvements in health, education, skills, and labor participation. At the event, NESG Chief Executive Officer Tayo Aduloju emphasized the necessity of transitioning from fragmented efforts to unified action. He underscored the importance of transparency, shared ownership, and robust cross-sector collaboration, highlighting that current insights must be converted into tangible, measurable results.
Revised Framework and New Measures
Rukaiya El-Rufai, Special Adviser to the President on the National Economic Council and National HCD Coordinator, addressed the urgency of sustained investment in human capital, driven by Nigeria's expanding population. She outlined that the updated HCD 2.0 framework shifts focus toward measurable outcomes, with key priorities in health, education, skills, and livelihoods, alongside gender inclusion, climate resilience, and digital access.
According to El-Rufai, new initiatives include a dedicated HCD budget line for 2026, enhanced governance under the National Economic Council, and plans for a national data dashboard to improve tracking and accountability. These measures are designed to address systemic challenges and ensure more effective implementation of human capital strategies.
Barriers to Progress Identified
Development leaders at the forum pinpointed weak implementation, inadequate data systems, and low public awareness as major obstacles to advancing human capital development. They noted that while policies are in place, execution remains a significant hurdle. Additionally, they emphasized the critical role of financial inclusion in supporting micro, small, and medium enterprises, which constitute the majority of employment opportunities in Nigeria.
The forum also stressed the need to shift young people from job-seeking to job creation, raising concerns about the structure of programs like the National Youth Service Corps. Calls were made for reforms to better facilitate skills development and entrepreneurship. Gaps in monitoring and evaluation systems, attributed to limited funding, capacity constraints, and poor stakeholder coordination, were also highlighted as impediments to progress.
Call for Broader Collaboration
Stakeholders unanimously agreed that overcoming these challenges requires extensive collaboration beyond government efforts, with the private sector playing a pivotal role through its core operations rather than merely corporate social responsibility initiatives. The meeting concluded with a renewed commitment to the HCD 2.0 agenda, built on three core priorities: aligning policies with private sector investment, expanding early childhood and maternal health interventions, and promoting formal sector growth to transition workers from informal to higher-value employment.
The overarching goal of the HCD program is to enhance education, health, and workforce participation, ultimately fostering a more productive and competitive economy for Nigeria. This initiative represents a critical step toward addressing the nation's human capital deficits and driving sustainable economic development.
